As a young lady or an adult in general, one of the important goals to achieve is to have an investment portfolio regardless of how small. One commonly overlooked investment option is real estate. Real estate as an investment is quite different from real estate as a necessity.
Before we delve into why should you consider real estate as your go-to investment plan, we need to understand the meaning of real estate. If you are still team savings then you need to read our post on savings vs investment
What is real estate?
Real estate can be regarded as lands and or buildings. In other words, all lands and or buildings can be classified as real estate depending on the location.
What is real estate as an investment?
Real estate is one of the most popular and oldest businesses that still generate huge profits for investors irrespective of the country. If you are thinking of investing, real estate is one of the most profitable and reliable investments that comes low or zero risk compared to other businesses.
Everyone can’t be a landlord, nevertheless, they need somewhere to live. The difference between real estate as a place to live and real estate as an investment lies in the purpose of ownership. Until your real estate property becomes a source of income it cannot be regarded as an investment.
Real estate investors build offices, cinemas, shopping malls or complexes and other related structures for commercial purposes. Likewise, they could decide to build a duplex, blocks of flats, bungalows and so on for residential purposes. Investors who see real estate as an investment could either offer these properties for outright buy or for lease. In both cases, they earn money.
Another good way to tap into the goldmine of real estate as an investment is to partner with credible real estate companies. This way you get to earn from real estate without having to pay the full cost of owning a real estate property.
If you want to know why real estate is still a good investment option, then you need to read this article to the end.
Why Real Estate as an Investment
Real Estate Appreciates In Value
Real estate is an investment that appreciates in value every day. Your property either duplex, bungalow, warehouse, office or other structures will increase in value year after year even your land value will also increase. So as you are collecting your rent on your property, the value of the property is also increasing.
Low Risk
Real estate investment can be considered low or zero risk investments. This is because the current economy can’t affect your property, your property can’t reduce in value like stock and other high-risk investments.
Real Estate Offers Better Returns Than Other Business Or Investment
Real estate is one of the most profitable investments that generate cash within a short time. You can easily buy a property today and put it up for rent immediately, within a few weeks you will start making money from your real estate investment. It is a fast money-making investment if you know where to invest in the real estate industry.
High Demand
People will always need where to live, likewise, an office to carry out their commercial activities, aside from that, you will be able to solve a lot of people’s problems by providing residence rental property for anyone who can’t buy or build his or her own.
Reliable Source Of Income
Most retired countrymen invest in real estate and this investment take good care of their finance during their old ages because it is reliable compared to other investment or business where you get paid after service but with real estate, you get your money before you give anyone access to your property.
Why real estate is a good investment
At this point, I’m very sure you know why real estate is a go-to option for your investment portfolio.
Small capital investment
You can be successful as an investor in the real estate industry regardless of the amount you invest. Considering that you can take up investment plans with credible investment companies helps to create a real estate investment portfolio without the huge capital.
Age is no barrier
Real estate is the best investment option for both young and soon to be retired individuals because it will take care of your finance when you finally retire. Some people are lucky to have real estate as an inheritance while some are not. For this reason a day old child can already be called a real estate investor. However, an individual can decide during the course of their life to invest in real estate or retire as a real estate investor
Predictable and timely returns
In as much as every investment comes with its associated risk, real estate is a reliable investment that brings regular, calculated and predictable profit. You can estimate the amount you are looking forward to at the end of a particular season.
Summarily, real estate either residential or commercial can be an investment. While you are weighing options about growing or starting your investment portfolio, considering real estate is not a bad idea.
